ARTICLES ABOUT EDWARD LAMPERT BY DATE - PAGE 4

Michael D. Collins, the chief financial officer of Sears Holdings Corp., has resigned "to pursue another opportunity," according to a regulatory filing. The Hoffman Estates-based retailer appointed Sears veteran William Phelan as acting CFO, effective immediately, according to the document filed with the Securities and Exchange Commission after the stock market closed Friday. Collins, 47, will remain with the company until June 10 "in order to ensure a smooth transition," the filing said.

Sears Holdings Corp. swung to a first-quarter loss as sales sank at Kmart and Sears stores, and its core appliance business continued a downward slide. The disappointing results come as Sears turns to new CEO Lou D'Ambrosio to stem the retailer's prolonged decline. Sears is counting on the former IBM Corp. executive to revive the company by capitalizing on its marquee brands, including Kenmore appliances, Craftsman tools, DieHard car batteries and Lands' End apparel. D'Ambrosio cited increased economic pressure on consumers and tough comparisons with last year, when Sears benefited from a government-sponsored appliance rebate program that boosted sales of refrigerators, washing machines and dryers.

In his first public appearance as chief executive of Sears Holdings Corp., Louis D'Ambrosio, a lanky technology executive from New Jersey, made a pitch to rival the Veg-O-Matic infomercial. The former IBM executive took the stage Tuesday at Sears' headquarters in Hoffman Estates, telling scores of investors gathered for the annual meeting that the company is on the mend — in spite of news Sears released the evening before saying it expects to lose money in the first quarter on falling sales.

Sears is attempting to make over its apparel business — once again. The Hoffman Estates-based retailer is putting the finishing touches on revamping apparel at 200 Sears stores in four markets: Chicago, Los Angeles, New York and Washington, D.C., the Tribune has learned. Sears hopes to transform the chain store best known for tools and dishwashers into a mecca of fashion for women and teens. The transformation, which began in May, is slated to be complete this month and involves a "significant investment," bringing in new store fixtures of various shapes and sizes, scores of mannequins, faster deliveries of new fashion trends and additional store workers, said Melanie Henson, chief marketing officer for apparel at Sears stores and former head of brand strategy at Limited Brands Inc.'s Victoria's Secret.

Sears Holdings Corp. is looking more seriously at selling its proprietary brands outside of Sears and is pouring money into beefing up its online business in an effort to become relevant to a new generation of shoppers. Sears and Kmart stores aren't going away, but they could be a hybrid of what they are today, said Edward Lampert, Sears' chairman and majority shareholder, at the company's annual meeting Tuesday. "Five years from now, I believe this company, to some people, will be unrecognizable to what it was 30 years ago," said Lampert, addressing a crowd at the retailer's Hoffman Estates headquarters.

Even as the recession forced scores of retailers to scale back or close, a swath of creative merchants managed to thrive. Forbes' Fastest Growing Retailers list, released this week, highlighted 10 retailers that flourished during the downturn while most of the retail industry went into the bunker. The list, based on the sales growth of major chains during the past three years, excludes companies that grew through acquisition. The list illustrates how much the lines have blurred between retail and wholesale and manufacturing.

This week marks the fifth anniversary for Sears and Kmart. On March 24, 2005, two of America's oldest retailers, with roots dating to the 19th century, tied the knot, for better or worse. The combined company is still standing and profitable after the Great Recession, a feat of its own given how many retailers succumbed to the economic downturn. But a look at the numbers shows a company that is getting smaller, making less money and employing fewer people. It generates less in revenue and profit than it did the first year together.

A federal court in Chicago dismissed a long-standing shareholder lawsuit against Sears Holdings Corp. that stemmed from Kmart Holding Corp.'s 2005 takeover of Sears, Roebuck and Co. The suit alleged that Sears and its then-chairman and CEO, Alan Lacy, along with Kmart's then-chairman, Edward Lampert, and his hedge fund, ESL Partners LP, misled investors because they didn't disclose talks between the retail chains. Sears and Kmart began to explore a possible deal in February 2004, one in which Sears would buy Kmart, court documents show.

Sears Holdings Corp. is doing some shopping of its own this holiday season. The owner of Sears and Kmart stores said its board of directors increased the size of the retail company's stock-buyback plan by $500 million. An additional $82 million worth of shares are available for repurchase under the company's existing plan. Most retailers have suspended stock-buyback programs to conserve resources and cope with cash-strapped consumers who are shopping less and expecting bigger discounts.

Sears Holdings Corp. Chairman Edward Lampert regularly takes heat from investors for failing to articulate a strategy. And once again at the company's annual meeting -- the only time he speaks publicly to investors -- he provided little insight into Sears' direction. But he had plenty of ideas on how to keep Sears going through the toughest retail downturn in decades. The billionaire investor and majority Sears stakeholder is concentrating these days on how to make about 200 million square feet of retail real estate space "more productive," he told shareholders Monday.